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Vroom-Vroom manufactures miniature cars and has determined that its total manufacturing cost of $1,500,000 is a mixture of unit-level costs, product-level costs, and facility-level costs.

Vroom-Vroom manufactures miniature cars and has determined that its total manufacturing cost of $1,500,000 is a mixture of unit-level costs, product-level costs, and facility-level costs. Vroom-Vroom has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units and product lines). Facility-level costs are not allocated to production.

Retail Products

Total Manufacturing

Collector Products

Unit-level costs

$600,000

300,000 units

500,000 units

Product-level costs

700,000

22 lines

31 lines

Facility costs

200,000

N/A

N/A

$1,500,000

How much cost would be allocated to the Retail division under an activity-based costing system that reflects an appropriate hierarchy?

(Please round to the nearest dollar at the end of your calculations)

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